Oil & Gas. Our Competence and Main Business area
The focus of our activities is on oil and gas production in the USA. We are pursuing the goal of steadily expanding oil and gas production, increasing our acreage and further consolidating our market position.
As operator, we currently produce from several dozen horizontal wells in the Wattenberg oil field in the state of Colorado.
We have minority interests in a similar number of wells. We produce a high four-digit number of BOE per day. The majority of production comes from the production facilities in Colorado. However, the importance of other oil fields, in particular the Powder River Basin, is steadily increasing.
Rich oil and gas deposits, north of Denver
One focus of our activities is the Wattenberg field north of the Denver metropolitan area. Denver is the capital and at the same time the most populous city in the US state of Colorado, located on the eastern edge of the Rocky Mountains.
The area is known for its rich oil deposits. Over the past decades, oil and gas companies have developed the field with around 20,000 wells. Horizontal drilling has dominated development for about ten years, before that production was exclusively by vertical drilling.
In recent years, our subsidiary Cub Creek Energy has drilled several fields from which it produces oil and gas. On the left picture you can see the locations of the areas developed by Cub Creek and the course of the wells. For the development of a field, a small well pad from which all wells are led is sufficient.
Wells precisely directed through the rock
Modern technology makes it possible to precisely control wells even at depths of several kilometers and thus to develop a wide area or an entire field with little space requirement. This not only minimizes investment costs, but also the space required on the surface.
The extraction, collection and removal of the oil is easily done on an area the size of a football field. Over the lifetime of the field, several million barrels of oil can be produced from this pad.
Oil and gas production is of great importance to Colorado. In 2020, with a daily production of around 450 thousand barrels, the state ranked fifth among the US states after Texas, North Dakota, New Mexico and Oklahoma. Denver is an important location for the oil and gas industry in the US. Many companies have their headquarters in the city.
There is a great potential of well-trained and experienced specialists. We can easily find employees and service providers who can help us to carry out our drilling projects using state-of-the-art technology and at competitive costs.
Rich oil and gas deposits, north of Denver
One focus of our activities is the Wattenberg field north of the Denver metropolitan area. Denver is the capital and at the same time the most populous city in the US state of Colorado, located on the eastern edge of the Rocky Mountains.
The area is known for its rich oil deposits. Over the past decades, oil and gas companies have developed the field with around 20,000 wells. Horizontal drilling has dominated development for about ten years, before that production was exclusively by vertical drilling.
In recent years, our subsidiary Cub Creek Energy has drilled several fields from which it produces oil and gas. On the left picture you can see the locations of the areas developed by Cub Creek and the course of the wells. For the development of a field, a small well pad from which all wells are led is sufficient.
Wells precisely directed through the rock
Modern technology makes it possible to precisely control wells even at depths of several kilometers and thus to develop a wide area or an entire field with little space requirement. This not only minimizes investment costs, but also the space required on the surface.
The extraction, collection and removal of the oil is easily done on an area the size of a football field. Over the lifetime of the field, several million barrels of oil can be produced from this pad.
Oil and gas production is of great importance to Colorado. In 2020, with a daily production of around 450 thousand barrels, the state ranked fifth among the US states after Texas, North Dakota, New Mexico and Oklahoma. Denver is an important location for the oil and gas industry in the US. Many companies have their headquarters in the city.
There is a great potential of well-trained and experienced specialists. We can easily find employees and service providers who can help us to carry out our drilling projects using state-of-the-art technology and at competitive costs.
Date: March 2022
*Natural gas is converted to oil equivalent using a factor of 6,000 cubic feet of natural gas per one barrel of oil equivalent.
**Future Net Income is defined as revenues minus partner interest, royalty, development costs, operating costs and production tax.
Cub Creek Energy is located in Highlands Ranch, Colorado. The company was founded in 2014 by Deutsche Rohstoff AG and the management. We currently hold an 88.5% interest in Cub Creek Energy. The Company has been engaged in the exploration, development and production of oil and gas in Colorado since 2014.
In 2015 and 2016, the company was able to secure extensive areas in the Wattenberg field. From 2016, it began to develop the areas by means of horizontal drilling. From 2016 to end 2019, the company has brought 55 wells into production and has continuously expanded its production. These were wells with a mile of horizontal length. Cub Creek holds between 60 and 100% ownership of the wells.
In mid-2019, Cub Creek began drilling eleven wells with two miles of horizontal length. These wells have been producing oil and gas since late 2019 and, with a Corona-related interruption of 9 months, again since early 2021. In 2021, the Company plans to conduct additional two and one-quarter mile drilling.
Deutsche Rohstoff share in Cub Creek Energy: 88.5%
Cub Creek Energy is located in Highlands Ranch, Colorado. The company was founded in 2014 by Deutsche Rohstoff AG and the management. We currently hold an 88.5% interest in Cub Creek Energy. The Company has been engaged in the exploration, development and production of oil and gas in Colorado since 2014.
In 2015 and 2016, the company was able to secure extensive areas in the Wattenberg field. From 2016, it began to develop the areas by means of horizontal drilling. From 2016 to end 2019, the company has brought 55 wells into production and has continuously expanded its production. These were wells with a mile of horizontal length. Cub Creek holds between 60 and 100% ownership of the wells.
In mid-2019, Cub Creek began drilling eleven wells with two miles of horizontal length. These wells have been producing oil and gas since late 2019 and, with a Corona-related interruption of 9 months, again since early 2021. In 2021, the Company plans to conduct additional two and one-quarter mile drilling.
Deutsche Rohstoff share in Cub Creek Energy: 88,5%
Oil and gas production
Elster Oil & Gas is based in Highlands Ranch, Colorado. The management is identical to the management of Cub Creek. The company was originally founded as Tekton Energy. Tekton Energy was the first company founded by Deutsche Rohstoff in the beginning of 2011 together with partners in the US in order to participate in the shale oil boom that was just beginning. Tekton sold most of its assets at a high profit in May 2014. Deutsche Rohstoff currently holds a 93% stake in Elster Oil & Gas.
In the context of the sale of the assets in 2014, some areas remained with the company. They are located in the northeast of the Wattenberg field. Elster holds minority interests of between 4 and 45% in these areas. The development of the areas was carried out by the operator Extraction Oil & Gas, who brought a total of 40 wells with lengths between one and two and a half miles into production between 2015 and 2018. This means that the areas that Elster has at its disposal have been drilled. In the coming years, Elster will probably be able to participate in some nearby wells with smaller shares.
The majority of the wells in which Elster is involved have proved to be very advantageous. At the beginning of 2019, Elster was able to announce that the investments of around USD 60 million made by the company in 2017 and 2018 had flowed back within one year from the proceeds of the drilling operations.
Deutsche Rohstoff share in Elster Oil & Gas: 93%
Elster Oil & Gas is based in Highlands Ranch, Colorado. The management is identical to the management of Cub Creek. The company was originally founded as Tekton Energy. Tekton Energy was the first company founded by Deutsche Rohstoff in the beginning of 2011 together with partners in the US in order to participate in the shale oil boom that was just beginning. Tekton sold most of its assets at a high profit in May 2014. Deutsche Rohstoff currently holds a 93% stake in Elster Oil & Gas.
In the context of the sale of the assets in 2014, some areas remained with the company. They are located in the northeast of the Wattenberg field. Elster holds minority interests of between 4 and 45% in these areas. The development of the areas was carried out by the operator Extraction Oil & Gas, who brought a total of 40 wells with lengths between one and two and a half miles into production between 2015 and 2018. This means that the areas that Elster has at its disposal have been drilled. In the coming years, Elster will probably be able to participate in some nearby wells with smaller shares.
The majority of the wells in which Elster is involved have proved to be very advantageous. At the beginning of 2019, Elster was able to announce that the investments of around USD 60 million made by the company in 2017 and 2018 had flowed back within one year from the proceeds of the drilling operations.
Deutsche Rohstoff share in Elster Oil & Gas: 93%
Oil and gas production
Salt Creek Oil & Gas is based in Denver, Colorado. Deutsche Rohstoff founded the company together with partners in mid-2015. In late 2016, Salt Creek acquired a package of land in North Dakota consisting of 60 producing and 90 planned wells. These were exclusively minority interests. The purchase price for the package amounted to USD 38 million. In mid-2018, Salt Creek sold the land again for around USD 60 million to a listed company based in the USA.
Since the beginning of 2019, the management of Salt Creek has been building a new position in the Williston Basin in North Dakota. By purchasing shares in various wells, production was expanded in 2019. Due to the withdrawal of former co-shareholders Deutsche Rohstoff holds 100% of the shares in Salt Creek Oil & Gas. Salt Creek only holds minority interests in wells. The operators in the field are usually very large companies that carry out a large number of new wells every year and have been able to achieve more and more production with less effort in recent years.
The Williston Basin in North Dakota is one of the largest oil fields in the US. In 2020, companies in the field produced nearly 1.2 million barrels of oil per day, or about 10% of U.S. production. The reservoirs from which the oil is extracted are generally very homogeneous and production is easily predictable. Similar to Colorado, the Williston Basin is an already developed field with very good infrastructure.
Deutsche Rohstoff share in Salt Creek: 100%
Salt Creek Oil & Gas is based in Denver, Colorado. Deutsche Rohstoff founded the company together with partners in mid-2015. In late 2016, Salt Creek acquired a package of land in North Dakota consisting of 60 producing and 90 planned wells. These were exclusively minority interests. The purchase price for the package amounted to USD 38 million. In mid-2018, Salt Creek sold the land again for around USD 60 million to a listed company based in the USA.
Since the beginning of 2019, the management of Salt Creek has been building a new position in the Williston Basin in North Dakota. By purchasing shares in various wells, production was expanded in 2019. Due to the withdrawal of former co-shareholders Deutsche Rohstoff holds 100% of the shares in Salt Creek Oil & Gas. Salt Creek only holds minority interests in wells. The operators in the field are usually very large companies that carry out a large number of new wells every year and have been able to achieve more and more production with less effort in recent years.
The Williston Basin in North Dakota is one of the largest oil fields in the US. In 2020, companies in the field produced nearly 1.2 million barrels of oil per day, or about 10% of U.S. production. The reservoirs from which the oil is extracted are generally very homogeneous and production is easily predictable. Similar to Colorado, the Williston Basin is an already developed field with very good infrastructure.
Deutsche Rohstoff share in Salt Creek: 100%
Oil and gas production
Bright Rock Energy is based in Denver, Colorado. The company was founded in mid-2018 by Deutsche Rohstoff and the current management. The Company identifies, acquires and develops prospective areas for oil and gas development with a focus on the Utah Uinta Basin. With the acquisition in the first half of 2020 in Wyoming, Bright Rock is now active in the Powder River Basin in addition to the Uinta Basin in Utah. The management team has extensive experience in acquiring and developing properties in oil and gas fields throughout the Rocky Mountain region of the US. Deutsche Rohstoff holds a 98.9% interest in Bright Rock Energy.
The Uinta Basin is one of the smaller fields in the USA, although oil has been produced there for decades. In 2020, Utah reported oil production of around 87,000 barrels per day. Development with horizontal wells in the Uinta Basin only began a few years ago. In the meantime, however, the operators have achieved some spectacular results that show the potential of the field for horizontal development. Some wells are among the best ever drilled in the USA. At around 244,000 barrels per day, the Powder River Basin is also a relatively small basin, but it offers very good and stable conditions for oil and gas production and is increasingly being developed by operators.
The management of Bright Rock spent several years developing and expanding the land in the Uinta Basin for a large Canadian company before switching to Deutsche Rohstoff in mid-2018 and co-founding Bright Rock Energy. In the meantime, Bright Rock has been able to build a position of nearly 3,000 acres in the core of the field through a number of smaller royalty and well interest purchases.The acquired acreage position in the Powder River Basin consists of approximately 28,000 acres and is 40% secured through existing production over the long term. Production was approximately 350 barrels of oil equivalent per day in early 2021. Additional wells in which Bright Rock has an interest will come on line in the current year.
Deutsche Rohstoff share in Bright Rock: 98.8%
Bright Rock Energy is based in Denver, Colorado. The company was founded in mid-2018 by Deutsche Rohstoff and the current management. The Company identifies, acquires and develops prospective areas for oil and gas development with a focus on the Utah Uinta Basin. With the acquisition in the first half of 2020 in Wyoming, Bright Rock is now active in the Powder River Basin in addition to the Uinta Basin in Utah. The management team has extensive experience in acquiring and developing properties in oil and gas fields throughout the Rocky Mountain region of the US. Deutsche Rohstoff holds a 98.9% interest in Bright Rock Energy.
The Uinta Basin is one of the smaller fields in the USA, although oil has been produced there for decades. In 2020, Utah reported oil production of around 87,000 barrels per day. Development with horizontal wells in the Uinta Basin only began a few years ago. In the meantime, however, the operators have achieved some spectacular results that show the potential of the field for horizontal development. Some wells are among the best ever drilled in the USA. At around 244,000 barrels per day, the Powder River Basin is also a relatively small basin, but it offers very good and stable conditions for oil and gas production and is increasingly being developed by operators.
The management of Bright Rock spent several years developing and expanding the land in the Uinta Basin for a large Canadian company before switching to Deutsche Rohstoff in mid-2018 and co-founding Bright Rock Energy. In the meantime, Bright Rock has been able to build a position of nearly 3,000 acres in the core of the field through a number of smaller royalty and well interest purchases.The acquired acreage position in the Powder River Basin consists of approximately 28,000 acres and is 40% secured through existing production over the long term. Production was approximately 350 barrels of oil equivalent per day in early 2021. Additional wells in which Bright Rock has an interest will come on line in the current year.